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Development Challenges and Prospects in Odisha

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 Development Challenges and Prospects in Odisha

Centurion Journal of
Multidisciplinary Research
ISSN: 2395 6216 (PRINT
VERSION)

Development Challenges and ISSN: 2395 6224 (ONLINE

VERSION)

Prospects in Odisha Centurion University of

Technology and Management

At - Ramchandrapur
P.O. - Jatni, Bhubaneswar
Dist: Khurda – 752050
Haribandhu Panda1 Odisha, India

Abstract
The development challenges faced by Odisha and possible strategies to address them are
discussed in this article. The collapse of public education system, both at school and
university level, results not only creation of socio-economically inappropriate manpower, but
also ever-corroding foundation over which it is not easy to establish a healthy society.
Increasing dependence on the private health system for perceptible high-quality service is
adding further misery to the large segment of the population belonging to middle class and
those below. Extraction based economic development, associated environmental degradation
and job-less growth, and declining agriculture and allied sector result in distress migration of
people. The situation is aggravated by the populist measures of political parties and recurrent
natural calamities in the form of cyclone, flood, drought and heat wave and absence of
climate resilient long term strategies of effective management of forest, water, land, minerals
through right type of local value addition and local market creation. There is an urgent need
for socio-political empowerment of excluded (scheduled tribes, scheduled castes, other
backward castes, women, disabled, landless and slum dwellers) for realising their right to
high quality education; health; and sustainable and dignified livelihood security through
appropriate technology introduction, market intervention, large scale employability and
entrepreneurship development, ownership and access to land and other natural resources and
public institutions.

Keywords

Development challenges, Possible Strategies, Odisha

Introduction
Development challenges in Odisha, like in any other state in the country, are
multidimensional: physical, economic, social, political, technological and ecological.
However, there are specific challenges and their underlying factors which make Odisha‟s case
unique. The purpose of this paper is to explore the factors that are responsible for Odisha‟s
position as one of the under-developed states in the country despite special attention it has

1
Haribandhu Panda, Vice Chancellor, Centurion University of Technology and
Management, Gajapati, Odisha, Email: haribandhu.panda@cutm.ac.in, Mobile:
9337388801

Centurion Journal of Multi-disciplinary Research, 2, 1 (2017): 47-59 Page 47

 Development Challenges and Prospects in Odisha

received from central government, and international and national agencies. The study is
primarily based on discussion with development practitioners, informed citizens and existing
literature as well as the author‟s grass-root level observation and understanding of the issues.
The article, first, presents the key development indicators of the state in comparison to other
states in the country. Next, it covers the resources available in Odisha. Subsequently,
objectives of development, strategies followed in the state and challenges faced are discussed.
Finally, before the concluding remarks in the last section, a possible way to move forward is
outlined.

Odisha’s Position among States of India

Odisha contributes to 3.5% of country‟s population, 4.9% of land area, 8.1% of water
resource, 7.2% of forest resource. Odisha has 20% of India‟s total mineral resources,
including 98% chromite, 70% bauxite, 38% graphite, 26% iron ore and 24% coal (GOO,
2011-12). The state contributes to 2.2% GDP. The state is characterized by 32.6% of people
below poverty line (BPL) in 2013 (GOO, 2015); 4.1% jobs in the organized sector, 73%
literacy, 29.6% good residential houses, and 22% households with toilet in 2011 (Census,
2011); 47.5% electrified rural households and 32.3% households with LPG connection as on
March 2015 (GOI, 2015). Table 1 gives a comparative picture of the state‟s performance in
the country.

Natural Resources of Odisha

Resources of Odisha can be broadly divided into natural, human and human made resource.
Key natural resources include land, water, forest, air, flora and fauna. Human resources are
the manpower with knowledge, skill and attitude for different socio-economic activities.
Human made resources are the wealth or means of producing wealth that are created by
human being. These include infrastructure, capital, technology, information and institutions.

Table 1: Comparative Development Indicators of Odisha

Indicator Unit Odisha India Best case Source
Population Percent of 3.47 100 - Census of India, 2011
India (11th from top)
Area Percent of 4.87 100 - Wikipedia
India (9th from top)
Population density Percent of 269 382 - Census of India, 2011
India (16th from top)
GDP Percent of 2.2 100 - Economic Survey,
India (16th from top) 2014-15, Government
of Odisha
Mineral Percent of 20 100 - Economic Survey,
India 2014-15, Government
of Odisha
Water resource Percent of 8.1 100 - Economic Survey,
India 2014-15, Government
of Odisha
Forest Percent of 7.2 100 - Economic Survey,
India (5th in absolute 2014-15, Government
area from top) of Odisha
India State of Forests
Report, 2015, FSI

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 Development Challenges and Prospects in Odisha

Annual Income at Rs/capita 52,559 74,380 117,091 http://niti.gov.in/conten

current prices as on (4th from (Maharash t/capita-nsdp-current-
31.07.2015 bottom) tra) prices-2004-05-2014-
15
BPL Household Percent of 32.6 22 9.2 Tendulkar Report,
State (6th from top) (Andhra 2011-12
Pradesh) http://data.gov.in
Life expectancy at Year 63 66.1 74.2 http://censusindia.gov.i
birth (13th from top) (Kerala) n, 2006-10
Infant mortality Per 1000 51 40 12 SRS 2013
child birth (Kerala)
Maternal mortality Per 235 178 66 SRS 2010-12
100,000 (Kerala)
delivery
Malnourished Percent 50.4 41.2 23.3 CAG report 22 of
Children (Maharash 2012-13 on ICDS
tra) scheme, 2011
Anemic women Percent 61.2 55.3 32.8 NFHS-3, 2005-06
(Kerala)
Enrollment in Percent 97.8 96.9 - ASER, 2016
School (6-14 age
group)
Class 5 children who Percent 51.6 41.6 - ASER, 2016
can read class 2 level
text in mother
tongue in
government schools
Class 5 children who Percent 23.8 21.1 - ASER, 2016
can do division in
government school
Class 8 children Percent 29.9 30.6 - ASER, 2016
from school
(government and
private) who can tell
meaning of simple
English sentences
Share of IIT JEE Percent 1.25 100 18.3 http://www.jagranjosh.c
qualified candidates (Andhra om/articles/
in 2014 Pradesh)
Share of All India Percent 0.89 100 13.4 (UP) http://www.jagranjosh.c
Civil Service om/articles/
qualified candidates
in 2015

Land and Forest Resource

Odisha‟s land area of 155710 sq. km has a mix of 37.3% for forest, 35.8% for cultivation,
8.3% for non-agricultural use, 5.4% of barren and un-culturable land and balance 13.2% is
left for a variety of other uses (GOO, 2011-12). Quarrying, mining, intensive cultivation,
excessive irrigation, water logging, salinity and inappropriate use of fertilisers and pesticides
have been the major causes of land degradation in the state. The estimated extent of land
degradation in the state varies from 24% to 37% of total land area (SWCD, 1995; NBSS
&LUP and CSWCR &TI, 2007; and MORD & DOS, 2010). Over the years, forest cover has
gone up. However, there is a decline in dense forest and increase in open forest cover.

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 Development Challenges and Prospects in Odisha

Water Resource
Odisha has the notoriety of being the fourth in the country in water pollution load (Pandey &
Ghosh, 2002). All major rivers of the state, i.e. Mahanadi, Brahmani and Baitarani are highly
polluted due to mining activity along the banks, industries and domestic effluents from
habitations (Choudhury & Satapathy, 2010). Urban local bodies release sewage directly to the
rivers, as none of the 103 bodies of the state have treatment systems in place. Water in
different parts of the state is contaminated by hexavalent chromium (Sukinda valley), fluoride
(Nuapada, Nayagarh and Angul), nitrate (Ganjam), iron (Mayurbhanj, Koraput, Puri, Anugul,
Rayagada, Keonjhar, Sundergarh and Cuttack) and chloride (Puri, Balasore, Jajpur and
Kendrapara) (Rath, 2010). Between 1950 and 2009, the fish variety in Mahanadi came down
from 104 to 43 (Pati & Biswal, 2009). Perennial streams and tube wells either start yielding
less water or get completely dried up because of destruction of aquifers.

Air Resource
Ambient air quality (suspended particulate matter and SOx) is at an unlivable level in the
mining and industrial belts and transportation corridors because of poor management of
dumping areas, blasting, mechanization of mining operations, ore benefaction, large scale
movement of trucks, lack of dust suppression systems and absence of tree cover (Vasundhara,
2008).

Objectives and Strategies of Development

In line with the national policy, the state of Odisha follows growth oriented development
strategy in contrast to distributive justice. It is visible from the fact that 32.6% people still
remain below poverty line in 2011-12. The structural shift of economy from agriculture has
moved to service sector over the years. In 2014-15, the broad agriculture, industry and
service sectors contributed about 15.4 percent, 33.4 percent and 51.2 percent of GSDP of
Odisha (GOO, 2014-15). There is a decline in agriculture production despite having 61.8%
total workers in the sector. The marginalization of workforce is visible from the fact that the
share of marginal workers in the total workforce increased substantially from 33 percent in
2001 to 39 percent in 2011.
The state‟s development policy is biased towards urban area, although out of 41.9
million people of Odisha in 2011, 83% live in rural area having primary dependence on
agriculture, forestry, fishery and wage labour. Odisha is home to 62 Scheduled Tribe
communities and 93 Scheduled Caste communities comprising 22.85% and 17.13% of the
total population respectively (GOO, 2011-12). The tribal communities are traditionally
dependent on natural resources for their livelihood such as forest gathering, swidden
cultivation and different types of agriculture production. Majority of the tribal communities
are largely impoverished, dispossessed, displaced, and unemployed, with very few productive
assets such as agricultural land. The state reported an average real annual growth rate of 8.2%
during 2007-08 to 2011-12. Such high growth rate is primarily due to presence of mining and
extraction based industries (coal, chromite, iron ore and bauxite mining, sponge iron
factories, steel plants, aluminum plants, thermal power plants and hydro-electric projects).
However, the benefits of economic growth led-development are not equitably distributed.
Given high levels of poverty, its slow rate of decline and irreversible loss of livelihood
supporting natural resource base, it is not surprising that Odisha is a case in point
representing a number of people's movements, resistance and struggles by local communities
in the last two decades.

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 Development Challenges and Prospects in Odisha

Challenges Faced - Disparity

a. Ownership, Access and Control of Natural Resources
Inequality in ownership, access and control of natural resources is clearly evident among
different groups in Odisha. Over the years, land fragmentation has gone up with the increase
in proportion of small and marginal land holders and their land. Credible land reform is yet to
happen in the state. Given the available land resource in the state, all landless families can get
adequate government land with irrigation facility along with other input and output services.
This initiative itself can put them above poverty line. Many forest dependent communities
have limited ownership and access to the forest land although the Forest Rights Act (FRA)
mandates government to allocate land to individual as well as communities.

b. Economic Disparity in Odisha

Based on the estimates of the Tendulkar Committeei, taking into account poverty line basket
of goods and services, in 2009/10, the Poverty Head Count Ratio of rural, urban and overall
Odisha were respectively 50.5%, 28.5% and 47.3%. In rural Odisha, 74.5% ST, 61.3% SC,
37.8% OBC, and 34.4% under general category were below poverty line. Geographically,
rural Poverty Head Count Ratio was 61.1% in South, 54.2% in North and 37.9% in coastal
region of Odisha. Hence, rural poverty in Odisha is concentrated in Southern and Northern
regions of the state and among the ST and SC communities.
Out of 30 districts in the state, 15 districts have the dubious distinction of having more
than 60% people below poverty levels. Koraput, Nabrangpur, Kalahandi, Nuapara, Boudh,
Phulbani, Deogarh and Sambalpur are the poverty packed districts with more than 70%
people below poverty line (Chaudhary and Gupta, 2009). The annual decline of poverty in
rural and urban areas has been abysmally low at a rate of 0.78 and 0.38 percentage points
respectively, between 1993-94 and 2009-10 (GOO, 2011-12). Despite rapid economic
growth, Odisha remains far behind in poverty reduction because of its focus on mining,
extraction based industrialisation without value addition, degradation of natural resources on
which large groups of population depend for their livelihood, neglect of agriculture and land
reforms (Padhi & Panigrahi, nd and Mishra, 2010).

c. Social Disparity in Odisha

Social disparity strengthens the structures that induce scarcity of natural resources and
consequent environmental insecurity. Odisha's precarious condition of employment,
education, and health further exacerbates environmental insecurity. The employment situation
of the state is characterised by a decline in number of cultivators, main workers in agriculture
and rapid increase in marginal workers. In addition, feminisation of agriculture in Odisha
indicates the precarious condition of the marginal women workers. Between 1991 and 2011,
main workers have come down from 87% to 53%, with corresponding increase in marginal
workers from 13% to 47% (Rath, 2010). The current thrust of the state‟s development policy
has been capital intensive, mineral extraction and electricity generation industries that have
led to creation of fewer jobs locally. Therefore, a sizable number of youth is moving out of
the state as unskilled labour.
The Annual Survey of Education Report (ASER, 2016) indicates the poor quality of
school education in rural Odisha. 51.2% of Standard V rural students (11 year olds) in
government run schools are unable to read standard II level text, and 76.4% cannot do single
digit division in 2016. Only 29.9% students of standard VIII school students could
understand simple English sentences. At this level of educational achievement, developing
large scale skilled workforce in near future remains a distant reality. With respect to health
status in Odisha, 65% children aged 6-59 months and over 61% women aged 15-49 years are
anemic and children under the age of three; 39.4% are under-weight in 2005-06 (NFHS,

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 Development Challenges and Prospects in Odisha

2004-06); 64% deaths are attributed to neo-natal mortality and premature deliveries result in
38.5% infant deaths (SRS, 2011). Pneumonia, respiratory diseases, tetanus, diarrhea and
malaria are major causes of deaths in Odisha (GOO, 2010-11).

d. Administrative Deficit
Political power in Odisha, currently, tends to be controlled by mine owners, real estate
developers, contractors, private educational entrepreneurs, media barons, national and
multinational companies. In addition, populist policies such as highly subsidised food for
able-bodied people delinked from work; liberal relief during recurring natural calamities;
patronage of a cadre of unemployed youth for supporting political parties; lack of shared
vision among the dispossessed and absence of their institutions; sub-critical long term
investment in agriculture, land and infrastructure development and human resource creation;
and unaccountable administration, have all contributed to unequal distribution of power in
Odisha (Padel & Das, 2010 and Sainath, 1996).
Government policy of open arm invitation to mega national corporates and
multinational companies for mining, trading and extraction based industry regardless of
significant value addition or adequate implementable mechanisms for ensuring adherence to
the rule of law and agreed conditions of license have also been significant deterrents for
irreversible environmental degradation and consequent social friction. The decline in
environmental assets is primarily due to unsustainable extraction and use triggered by mining
and other natural resource processing activities. Additionally, weak state policies, poor
technology, mismanagement of resources, linkage to national and global market, and
increasing poverty have led all to degradation in quality and quantity of natural resource base
of the state (Roy, 2009; CSE, 2008 & Bhaduri, 2010).

Social Friction in Odisha

One of the major strands of social friction in Odisha is in the context of the development of
tribal population which constitute about one fourth of the state‟s population. Considering the
unforgivable way the development in tribal areas is steered in the state, it appears that „their
decimation‟ is a prerequisite for state‟s development. Hence, the agenda is to bring them into
mainstream through displacement of youth from their place in the name of education, skill
development and subsequent employment; demean their language, culture and knowledge
system; take away their land and choke their voice, including that of children and women for
natural resource exploitation. The new economic policies, post 1990s in Odisha, have made a
powerful impact on the welfare state. Increasing conflict between common people and state
sponsored private interests related to forest, water, land and mining are visible all over the
Odisha. Continuation (actual/perceptive) of left-wing extremism appears to be in the interest
of the state machinery to solicit development funds from the center.

Alienation
The alienation in Odisha is visible in the form of demand for separate states from different
quarters. They include - Koshal in Western Odisha, Kalinga in South Odisha and Kherwal in
Northern Odisha. Concentration of development initiatives and location of national level
institutions in and around Bhubaneswar; lack of infrastructure and reluctance of public
servants to move out of coastal districts have created a sense of alienation among the people
of different regions.

Lack of pride in Odia Language and being Odia

Although Odisha was created as a separate state in 1936 on language basis and after eight

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 Development Challenges and Prospects in Odisha

decades, Odia is yet to be used as the state language in its official transaction. There seems to
be a reluctance on the part of the people to speak in Odia outside the state. There is no pride
in the language spoken by the masses and the gulf between class and mass is difficult to
bridge. Brand Odia/Odisha is very weak. It is not surprising that the struggle to start an Odia
University in the state is mired with controversy.

Leadership and Weak Governance System

Odisha‟s governance system appears to be weakest. The elected representatives do not appear
to lead and drive the agenda of development. They are driven by bureaucrats who are not
responsible to the masses. This represents the real „tyranny of unelected‟. In the absence of
demanding citizens, powerful politicians and ministers, there is no positive change and
therefore status quo is maintained. The state has the distinction of having „first‟ in most
policy papers, but weakest in delivery.
In case serious issues affecting the sentiments and fate of large population in the state,
such as “Nabakalebara”ii, killing of innocent people in Kandhamal during „anti-maoist‟
operation by security forces, chit fund scams and Mahanadi water issues, the response of the
state has been far from expectation. Instead of reactive steps, proactive steps both from
government, political parties and civil society organisations could have been more effective.
Legitimate demands of people are not met. Lack of charismatic and visionary leaders in the
state and hopelessness among people about the effectiveness of any political party who can
bring a paradigm shift in state‟s development strategy are areas of major challenge. When the
political representatives are not empowered, how they can empower the people they
represent? The state lacks right institutions, professionalism and priorities of development.
Weak governance affects the management system. That is the reason why large amount of
money is spent in a skewed manner and unspent money is returned to the center, in the face
of crying need for such resources. Education and health system, the two foundations of
development, have collapsed beyond recovery. Weak education system has resulted in
mushrooming unemployable and undisciplined educated youth in the society. They are like a
social time bomb. Increased privatization and declining public health system gradually
pauperizing the citizens.

Biased Media and Civil Society Organisations

Given that the media is controlled by big business, for profit and with clear political
affiliation and aspiration, it is difficult to expect that the news they publish will be unbiased.
Often national media has to highlight the issues of significance for the state. We have few
news magazines like Samadrusti with grass-root reporters, who fail to receive patronage from
the readers, because of lack of responsibility and ownership for a cause. Many civil society
organisations are being co-opted by the vested interests to advance their agenda, which may
be against the interest of the state‟s sustainable development. Government has also started
many organisations to undertake activities which otherwise would have gone to civil society
agencies. To carry forward the agenda of the crony capitalists and not to derail the
„development‟ strategy chosen, the state is responsible for shrinking the civil society space.

Developing Resilience against Natural Calamities and managing Distress

Migration
Odisha faces the recurrent challenge of flood, cyclone, drought, heat wave and lightning.
Although technological forecasting before the occurrence of major natural calamities has
been effective in saving lives of people, the damage to property and wellbeing could not be

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 Development Challenges and Prospects in Odisha

controlled because of lack of long-term strategy and investment in infrastructure and human
capacity.
Distress out-migration from the state is rampant, especially from western Odisha and
tribal areas. They face extreme form of marginalization in their new place of work. Hence,
there is an urgent need to develop an enabling environment for local value addition and local
market creation that will help the excluded from indignity and vulnerability they face. Such
measures can possibly contain disintegration of indigenous community in terms of erosion of
culture and identity.

Possible Way Forward

The state of Odisha is in a critical state politically, socially, economically, technologically and
ecologically. Considering the geographical, spiritual advantage and natural resource
endowment that the state has, physical infrastructure in the form of roads, communication
network, electricity, irrigation system available; social infrastructure in the form of national
level educational institutions, judiciary and civil society organisations and information
linkages at its disposal, the state is in a unique position to move forward.

Creating empowered citizenry

The need of the hour is a mass social movement for motivating empowered political leaders,
creating demanding citizens, developing a shared vision for the state, polarizing/aggregating
communities, and transformation from a predominantly relational to professional society.

Restoring governance system

Prioritising development goals and implementing through right institutions and professional
bureaucracy are the keys for advancement of Odisha. The gap between ruler and ruled has to
be bridged through elected representative led bureaucracy operating in Odia language at all
levels. Restoring accountability and transparency of existing institutions is the immediate
need such as the Panchayati Raj Institutions.

Putting development in the hands of the excluded

People‟s dignity that has been snatched away systematically by providing them with doles
need to be restored. There lies the beginning of the journey to future. ST and SC
communities, who together constitute 40%, can get justice only when then can be mobilized
by themselves.

Balanced and context specific development

Development must address the issue of regional disparity to avoid animosity and misuse of
precious resources of the state. Development of Odisha needs to be regionally dispersed, rural
centric, natural resource based and focusing on agriculture, forests, coast line and
ecologically extracting minerals along with downstream industrialization.

Technology based and market linked development

Technology is the master key for development. To exploit the comparative geographical
advantage of the state and available natural resource endowment, the strategy of local value
addition through appropriate production system, right technology, adequate finance and
market linkage for inputs and outputs need to be in place. Enhancing carrying capacity of
land, water and forest resources; incorporating resource husbandry into the farming systems;
and increasing agriculture productivity to create household food and nutritional security are
required. Context specific interventions in on-farm value chain, off-farm value chain and
non-farm value chain, including risk reduction through diversification need to be designed

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 Development Challenges and Prospects in Odisha

and put in practice.

Gram Panchayat level Energy Security, Water Security, Food Security and
Sustainable Livelihood Security can be the basis for development. For example, decentralized
renewable and clean energy solution can be the direction for energy security. Micro
watershed and water harvesting can be the direction for water security. Similarly, organic
agriculture appropriate for the agro-climatic zone can be the basis for food security. Likewise,
livelihood security can be ensured through effective natural resource management and the
concept of local level self-sufficiency and self-reliance.

Overhauling the education system

The traditional education system in the state has a high artificially pass-out rate at the school
and high failure and high drop-out rate at the college level, from employability and
enrollment perspective. (Banerjee, 2014) aptly puts it:

Most drops out, rejected and dejected are labeled as failures. This is not just
catastrophic for the individual but detrimental to all of us as a society. The
tragedy is that even those who get through the system with the right degrees
are mere survivors, many of them don‟t enjoy the journey, and most cannot
state how their years of grind enabled them to be responsible citizens in
society. There is no point in arming a rural student with a degree that does
not help him find a job in a city nor prepare him to help his father at their
farm – we must create an educational system that empowers and increases
opportunities rather than constrains or demotivates. The need for society is to
create an equitable system that provides education to all, education as a tool
for empowerment, not a weapon to judge and cast aside.

Education has to be seen from the employability, entrepreneurship (social and

economic) and new knowledge/skill creation perspective. Skill integrated context specific
education has to put in place. Accountability at all levels, both in private and government
educational establishments should be ensured.

Focus on skill development for school dropouts

School Education must include skill development: literacy, numeracy and life skills. Every
job requires it and these must be part of School Education. Teaching method must evolve
from „Learning by Listening‟, through „Learning by Seeing‟ and „Learning by Doing to
„Learning by Discovery‟. Every student must produce something tangible while studying.
Every teacher in School must understand essential and minimal purpose of education, i.e.
livelihood security through employability, employment and entrepreneurship.
Entrepreneurship policy should therefore focus on nano, mini and micro
entrepreneurs. Skill development must follow an ecosystem approach (cluster model):
Symbiotic relationship between Academia, Training Institute, Industry, Mentors (SSCs,
NSDC, Individuals, Assessment and Testing Agencies, etc.), Facilitators (government) and
the Community. Skill development has to be a flagship programme of the institutes of higher
learning. It must continuously design, deliver and upgrade job specific skill development
programmes (core and professional). Skill training and education programs must have
multiple/lateral entry and exit points.
Industry arms must be based in academic institutions with possibility of in-kind
support through CSR programmes. Training providers must be involved in the entire value
chain covering trainee identification, skill mapping, pre-admission counselling, admission,
induction, training delivery, continuous assessment, certification, pre-placement counselling,

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 Development Challenges and Prospects in Odisha

placement and migration facilitation, in addition to post-placement support. State-Specific

Quality Accreditation and Assurance must be taken up by government

Overhauling the health system

There is an urgent need for bringing order into the public health system. Health service
delivery is too big a task to be left in the hands of private institutions. Bringing the efficiency
of market into the public/community health system is possible. Structural change in health
service administration and delivery is the call of the day. The system has been neglected for
too long and at high cost to the society.

Inclusive financial service delivery

Finance is the life blood of any organization. Credit-Deposit ratio for commercial banks and
cooperative banks in the state remained at 84.1% and 115.1% respectively in 2013-14. This
shows the conservative nature of commercial banks. Entrepreneurs of medium, small and
micro-enterprises are often disillusioned by the bank‟s attitude in meeting their expected
financial needs.
Credit for excluded sections of the society has never been easy. Some of the specific
issues and barriers to financial inclusion in the state include ineffective Business
Correspondent (BC) channel in the state, weak institutional base of Self Help Groups
(SHGs), lack of sustainable enterprise activity for SHG members, poor opportunities for
marketing of SHG products, lack of trained and sensitized professionals and poor financial
literacy (SFIF Odisha, 2013). Such issues need to be addressed on an urgent basis to improve
inclusive financial service delivery.

Concluding Remarks
Attempt is made in this article to understand the development challenges of Odisha and
possible strategies to overcome them. The collapse of public education system, both at school
and university level, results not only creation of socio-economically inappropriate manpower,
but also ever-corroding foundation over which it is not easy to create a healthy society. The
ever-increasing dependence on the private health system for perceptible high-quality service
is adding further misery to the large segment of the population belonging to middle class and
those below.
Disempowered community, unrealistic aspiration of the population, job-less growth,
ever-increasing unemployed educated youth and visible social friction, in spite of a stable
government, are the symptoms of a systemic failure of the development strategies followed
by the state. The missing link is the distorted political connect between the mass and the
ruling class which cannot drive the development agenda in a virtuous cycle of sustainable
human development and good governance system. At present, it is a vicious cycle of poor
governance and unsustainable development.
Environmental insecurity out of a de-stabilised natural resource-based livelihood
system (reflected in degradation of land, forests and water, in many cases causing irreversible
damage to the ecosystem) is leading to social friction. What is significant to note is that loss
of natural resource base for livelihoods has led to unemployment, underemployment of
people dependent on such resources, increasing morbidity, distress migration and, social
disharmony and conflicts at family and community levels. Furthermore, there is
transformation of the local social environment with the emergence of an elite group in the
form of company officials, contractors, journalists, traders and police/government officials
who begin to encroach and control the future of the local communities.
Here lies the role of civil society, people‟s institutions, people‟s journalism and caring
individuals in creating an enabling social movement for churning the minds of the masses to

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 Development Challenges and Prospects in Odisha

understand the present situation and visualize a state of „shared dream‟. Inspiration can be
drawn from the people‟s science mass movement in Kerala (Kerala Sasthra Sahitya Parishad
or KSSP that started in 1962).
In 1972, KSSP decided to become a People's Science Movement and adopted
"Science for Social Revolution'' as its motto. Over the past four decades it has
grown into a massive people's science movement, with a membership of about
40,000 drawn from all walks of life and distributed in about 2000 units within
the state of Kerala. Over these years, it has also expanded its fields of interests
and activities to almost all fields of human endeavor. The KSSP is involved,
broadly in three types of activities: educate, agitate and construct, in areas like
environment, health, education, energy, literacy, micro-planning and
development in general. (www.kssp.in)
The starting point will be just demand and contribution in ensuring provision of right
education and health services for all and creating livelihood opportunities and social
securities for the „genuinely‟ underprivileged. Systemic institutional support to old,
differently abled, single women and children for meaningful life with dignity needs to be pro-
actively followed.

Acknowledgements
Sections on Resources (section 3), Disparity (section 4.1) and Social friction (section 4.2) are
adapted from a co-authored paper (Panda, H., Panda, S.M. and Lund, R. (2013),
Environmental Insecurity and Social Friction: Links in Rural Odisha, International Journal of
Rural Management, Sage, 9(1) 17-43).

Notes
i
According to Tendulkar Committee, for the purpose of estimating Poverty Head Count
Ratio, Rs 632/month/person for rural and Rs 1006/month/person for urban area in 2009-10
were considered.
ii
Nabakalebara is a symbolic recreation of wooden forms of the three deities at the Jagannath
Temple, Puri. The occasion occurs every 8th or 12th or 19th year of the previous Nabakalebara.

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